HP subsequently sued Hurd, saying that he would not be able to perform the new job without violating a confidentiality agreement tied to his severance package. Oracle CEO Larry Ellison called the suit "vindictive" and said it put the two companies' longtime relationship in jeopardy.

The settlement's terms were not disclosed. However, Hurd "will adhere to his obligations to protect HP's confidential information while fulfilling his responsibilities at Oracle," according to a statement.

Hurd received $12.2 million in severance when he left HP and an additional tens of millions worth of stock and stock options. It's not clear if the settlement agreement has an impact on his severance package.

In addition, the companies said they plan to continue to build upon their decadeslong partnership, Ellison and interim HP CEO Cathie Lesjak said in respective statements.